Another £115m wiped off Snap chief Evan Spiegel’s stake
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Another £115m wiped from Snap chief Evan Spiegel’s stake in social media group as dismal results send shares tumble
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Snap founder Evan Spiegel saw another £115m worth of the value of his stake in the social media group wiped out as dismal results sent shares tumble.
The stock plunged more than 30 percent on Wall Street after losses rose to £324 million in the third quarter, from £65 million a year earlier.
That reduced the value of the 3 per cent stake held by Spiegel – who is married to Australian model Miranda Kerr – to just £280 million.
Jetset: Evan Spiegel with his wife Miranda Kerr
When the stock peaked at $83 just over a year ago, those shares were worth £3 billion.
The company, which owns the video messaging app Snapchat, blames the poor results on the advertising markets and says companies have cut marketing budgets.
Challenges surrounding Apple’s privacy changes also made it harder for apps to target ads and measure campaign success.
And Snap is struggling with the rapid growth of rivals like TikTok.
On Thursday, the company reported third-quarter sales rose 6 percent to £1.01 billion, well below expectations.
To stem the decline, Snap is laying off 20 percent of its 6,000 employees as part of a major restructuring.